ECB published an opinion (CON/2017/23) on the amendments to a draft law of the National Bank of Belgium (NBB). This opinion encompasses new category of debt instruments, new macro-prudential tool, the creation of a new category of settlement institution, and the exclusion of set-off rights.
ECB, on April 03, 2017, had received a request from the Governor of the National Bank of Belgium (NBB), on behalf of the Minister of Finance, for an opinion on a draft law on various financial and tax provisions. The draft law amends various provisions contained in the NBB Organic Law, the Law of February 28, 2002 (on organizing the establishment of the balance of payments), and the Banking Law. ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union (TFEU) and the third, fourth, fifth, and sixth indents of Article 2(1) of Council Decision 98/415/EC, since the draft law concerns the NBB, the collection of balance of payments statistics, payment and settlement systems as well as rules applicable to financial institutions insofar as they materially influence the stability of financial institutions and markets. The ECB opinion does not address the issue of whether the draft law effectively implements Directive 2014/49/EU (on deposit guarantee schemes) in Belgian law. The focus of this opinion is on the various provisions of the draft law related to the:
Creation of a new category of senior non-preferred debt instruments in the insolvency hierarchy of credit institutions
Introduction of new macro-prudential tools
Creation of a new category of settlement institution
Exclusion of set-off rights with respect to credit claims pledged to the NBB
Introduction of new penalty payments in the context of balance of payments statistics
Independence of the NBB’s decision-making bodies with regard to financial stability matters
Related Link: ECB Opinion (PDF)
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